Detroit weighs tax and wage strategies to draw more major retailers

Detroit is trying to attract more national and regional retailers as residents continue to travel to nearby suburbs for goods such as home supplies, school apparel and electronics.

Mayor Mary Sheffield introduced a retail attraction strategy in March aimed at recapturing an estimated $3 billion Detroit residents spend in suburban communities. In July, the city hired Addofio Addo, a former Bedrock executive, as its first director of retail attraction.

The city faces barriers including high property taxes, elevated insurance costs and a median household income of $39,938, which can make corporate profit projections less attractive. As of July, 1,143 full-time city workers receive a minimum livable wage of $21.45 an hour, or $44,616 annually.

Policy ideas under discussion include an entertainment tax that could generate $14 million to $47 million annually and a local-option sales tax that could generate $71 million to $82 million, though the sales tax would require a constitutional amendment and has drawn concerns about its impact on low-income residents.

Read the full story at michiganadvance.com.